U.S. futures, Europe stocks gain; yen at 2017 low
BNN Bloomberg
U.S. index futures and European stocks rose, extending a strong start to 2022, as investors bet data on U.S. manufacturing and job openings will further show the world’s largest economy is resilient against the spread of omicron.
U.S. index futures and European stocks rose, extending a strong start to 2022, as investors bet data on U.S. manufacturing and job openings will further show the world’s largest economy is resilient against the spread of omicron.
Contracts on the S&P 500 Index climbed 0.2 per cent after the underlying gauge hit another record Monday. Carnival Corp. advanced in premarket New York trading amid a global rebound intravel stocks. Treasury yields steadied as Federal Reserve tightening underpinned traders’ debates on the year’s outlook. The dollar was marginally higher as the yen tumbled to a five-year low. Europe’s Stoxx 600 recaptured its record.
Investors are setting aside their worries about the highly infectious omicron virus variant for the moment as they continue to trade on the economic recovery from the pandemic. The ISM December survey, due for release Tuesday, will show the early impact of the variant on supply chains, while the JOLTS data will show the balance between job openings and unemployment numbers.
“Globally, there is a lot of news regarding the rising omicron cases, but there is also a lot of news that the cases are not as deadly as the previous variants of COVID,” Ipek Ozkardeskaya, a senior analyst at Swissquote, wrote in a note. “And investors prefer focusing on a glass half full rather than a glass half empty at the start of the year.”
Markets anticipate an uptick in volatility as they navigate through the omicron variant, supply-chain disruptions and more central banks winding back pandemic stimulus. More than one million people in the U.S. were diagnosed with COVID-19 on Monday, a new global daily record.
The 10-year Treasury yield was steady at 1.63 per cent after surging 12 basis points on Monday. The two-year rate was at 0.77 per cent. Looking beyond the current risk-on momentum, traders expect Fed tightening to boost yields and reset equity valuations. This week’s U.S. December payroll data and minutes from the Fed’s meeting last month may throw more light on the pace of such shift.
